Project Profile: Expropriation Appraisal

Expropriated Partial-Taking from a Rural Residential Property

Staff: Ken Stroud, Mark Penney
Client: Owner - c/o Rueter Scargall Bennett LLP

In 2008, gsi was retained to estimate the value and influence of an expropriated partial-taking from a rural residential property.

The Ministry of Transportation (MTO) expropriated 2 strips of land from the 1 acre subject property. The land was required for the Highway 410 extension and widening of Heart Lake Road.

The MTO's offer at the time of expropriation excluded any compensation resulting from the loss in value to the remaining property (i.e., injurious affection).

Based on our analysis, we concluded the following change in Highest and Best Use as a result of the expropriation and related works:

Highest and Best Use "Before" the expropriation.......

As Vacant: Residential use.

As Improved: Continuation of the existing residential use.

Highest and Best Use "After" the expropriation......

As Vacant: Contributory value to the adjoining parcel according to a future industrial/commercial use.

As Improved: Continuation of the existing residential use.

The change in Highest and Best Use "as if vacant" is considered very significant as it would diminish the value of the subject property under its current residential use due to the area's transition to an industrial/commercial node.

Our valuation determined that the market value of the subject property would decline by approximately 65% after the expropriation. This quantum of loss resulted in the MTO deciding to "buy-out" the subject property at its market value "before" the expropriation.

Type of Assignment / Service Areas Sourced

  • Expropriation Appraisal
  • Planning Impact Assessment
  • Highest and Best Use Assessment